Challenges Facing The Australian Coal Industry - 1. Introduction

Coal is expected to play a major role in energy supply in the next 20 years. Oil is a convenient and still reasonably abundant fuel. However, its major sources of supply are regions where there is nervousness about political stability. Uranium is a more efficient fuel - but there is a continuing community apprehension regarding its use. What coal may lack in efficiency, it makes up in long term availability and competitive overall cost. Moreover, diversity of source ensures stable long-term supply. In this way, a major role for coal in the world energy scene is assured. Cyclical considerations aside, demand for coal will increase significantly and it will meet a substantial share of new energy demand, replacing oil and gas in major industrial and electric utility markets. By around the year 2000, coal's share of world energy could reach 30% and rival oil as the largest single source of energy.